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Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years, and your cash

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Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years, and your cash flows from the contract would be $4.98 million per year. Your up-front setup costs to be ready to produce the part would be $7.99 million. Your discount rate for this contract is 7.9%. a. What is the IRR? b. The NPV is $4.87 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? ... a. The IRR is %. (Round to two decimal places.)

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